Institutional Analysis: Weak Non-Farm Payrolls Benefit US Treasuries, Terminal Interest Rate Expectations May Be Lower

Jinshi data news on August 2nd, the weaker-than-expected non-farm report is obviously beneficial to US Treasury bonds. We expect the year-end expected level of 10-year US Treasury bonds to reach 3.82%. We suspect that long-term Treasury bonds will find a bottom, but short-term Treasury bonds may continue to reprice. Although we do not expect the Federal Reserve to cut interest rates by 50 basis points in September, we believe that the market will price a lower terminal interest rate.

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